The growth of video eLearning keeps on accelerating. Using video in your learning experiences provides a more immersive experience and gives your learners more context than is possible with just text and images. Video is also becoming easier, faster and cheaper to produce and edit, and bandwidth has increased. Web technologies have advanced to a stage where interactions can be added over the top and inside of the video frame, which increases the overall immersive experience.
The term interactive video is a bit of an oxymoron. Video is a pre-recorded medium. It's never going to be fully interactive. 'Watching' is a passive verb. While video games are highly interactive, they don’t actually use video, instead relying on 3D graphics generated in real time in response to the user. There might be some pre-recorded material but the bulk of the experience is generated.